Sales of new electric or hybrid vehicles in Brazil are expected to surpass sales of internal combustion engine vehicles in 2030, according to a study released on Sept. 27 by the Brazilian Automobile Manufacturers Association (Anfavea), Reuters reported.
Brazil is the eighth-largest auto producer in the world and the sixth-largest auto market in the world when measured by the countries’ domestic sales, according to data released by Anfavea earlier this year.
The study also suggests that by 2040, sales of new all-electric or hybrid vehicles in Brazil may account for more than 90 percent of total domestic car sales, compared with 7 percent today.
Chinese automakers BYD and Great Wall Motor, which are currently exporting and selling electric vehicles to Brazil, are major players in the country’s domestic EV market. Notably, BYD sold 17,291 units in Brazil last year, and in the first half of this year it sold a whopping 32,434 units, which is nearly double last year’s sales. Both BYD and Great Wall Motor have previously announced plans to localize their car production in Brazil, marking the companies’ commitment to expanding their presence in the country.
By contrast, traditional U.S. and European automakers have lagged behind their Chinese rivals in the Brazilian EV market. However, GM and Stellantis, among others, are trying to capture Brazilian auto market share and plan to launch Hybrid-Flex Vehicles in Brazil. These vehicles can run on ethanol or gasoline only, or with batteries. This shows that the automotive industry has demonstrated a high degree of adaptability to the Brazilian automotive market, which has unique fuel requirements.